The artificial intelligence boom has propelled many companies in the semiconductor supply chain, including South Korean company Soulbrain, and its founder Chung Ji-wan has made it to Korea’s 50 Richest list for the first time. With a market cap of 2.4 trillion won, Soulbrain produces chemicals used in the semiconductor-manufacturing process and is owned by Chung, his wife, and daughter, who hold a combined 10% stake in the company.
Soulbrain’s essential chemical products are used in the treatment and preparation of silicon wafers for chip production, with major customers including Samsung Electronics and SK Hynix. Despite a decrease in revenue and earnings in 2023 due to weak demand for smartphones and personal computers, investors are optimistic about Soulbrain’s future earnings potential with the rise of AI technology.
With the AI boom driving demand for advanced products like high-bandwidth memory (HBM) chips, Soulbrain’s CMP polishing compounds are crucial for HBM production, ensuring that silicon wafers have no imperfections on their surfaces. In its 2023 annual report, Soulbrain noted the increasing demand for CMP steps in HBM chips, leading to investor interest and favorable recommendations from analysts.
Soulbrain, a spinoff from Soulbrain Holdings, was founded in 2020 and went public on South Korea’s Kosdaq stock exchange the following year. Besides its semiconductor chemical business, Soulbrain Holdings also supplies chemicals to electric vehicle battery makers and has interests in biotech companies like U.S.-based ARK Diagnostics. Chung, who started as a chemical engineer and previously worked in the semiconductor industry importing chemicals, has grown his businesses over the years.
The success of Soulbrain and other semiconductor-related companies in South Korea, like Hanmi Semiconductor and Leeno Industrial, reflects the growing importance of the AI industry in driving demand for specialized chips and components. As AI technologies continue to advance, companies like Soulbrain are well-positioned to benefit from the increasing need for high-performance memory chips and semiconductor products.
Chung’s entrance into Korea’s 50 Richest list at No. 48 with a net worth of $800 million highlights the significant growth potential of companies in the semiconductor supply chain, driven by the AI boom and increasing demand for advanced technologies. With a strong market presence and key partnerships with leading chipmakers, Soulbrain is poised to capitalize on the growing opportunities in the semiconductor industry and continue its upward trajectory in the coming years.
